Different Types of Organisation: Purpose and Legal Structures

BUSINESS & BUSINESS
ENVIORNMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Explain different types of organisation along with its purpose and legal structures.............1
P2 Explain the size and scope of a range of different organisations...........................................4
Task 2...............................................................................................................................................5
P3 Explain the organisation functions and with relation to the objective and structure.............5
TASK 3............................................................................................................................................6
P4 Identify the positive and negative impact of macro environment upon business by suitable
example ......................................................................................................................................6
P5 Conduct internal and external analysis to identity strength and weakness of ASDA............8
TASK 4............................................................................................................................................9
P6 Explain how the strength and weakness inter-relate with external macro factors.................9
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................12

INTRODUCTION
Business environment is described as aggregation of individual, organisations and
internal and external factors, that may or may not be in organizational control, but have a
significant effect on its productivity and performance (Zaušková, A. and Rezníčková, M., 2020).
These factors alters companies prosperity, profitability and persistence. ASDA, a retail private
company founded in 1949, NHS, public company, founded in 1948 with headquarter in London,
and a voluntary organisation Oxfam founded in 1942 are the basis of report. In this report, a
vivid description of distinct type of organisation along with purpose and legal structure are
mentioned. Apart from this, relationship between organisational functions in relation with
structure and objective of organisation are also mentioned. Furthermore, positive and negative
impact of macro and micro factors over a these organisation structures are explained through
PESTLE and SWOT.
Task 1
P1 Explain different types of organisation along with its purpose and legal structures.
Organisations are classified on the basis of their purpose to achieve a defined goal and
objectives. Organisations with objective of profit-generation falls under the category of private
sectors. Companies under a public sector, instead of profit generating profit works for the
betterment of public (Alrishani, 2020). Whereas, voluntary organisations are those non
governmental organisation who operate independently and are non-profitable.
 Public sector organisation :- Public sector consist of all the organisational bodies
that are governed and managed by government (Shukla, and Pattnaik, 2019). The
products and services of these state-owned organisations are designed to cater the
society as whole rather than a individual such as military, electricity, healthcare,
gas and oil, police service, postal service, public education, public transport etc.
Purpose of public organisations are :-
 The sole purpose of these organisations are to serve the common masses instead of
meeting the individual needs. Through their fair and equal services to everyone, helps in
eliminating the regional differences in the society.
Legal Structure
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 State-owned enterprise :- State owned or government owned business are those in
which government has a full or partly control over the entity and decisions are
taken with the involvement of government. Though the objective of these firms
are profit making but their services are directed to the common people. These are
postal service firms, state owned bus services , healthcare and electricity provider
firms.
 Central owned enterprises :- Public sector undertakings or public sector
enterprises are those owned, governed and operated by the central government or
sometimes jointly with state governments. Country with rich mineral and natural
resources forms this types of organisations (Sedej, 2019). These may include, gas
and oil companies, postal services, railways, telecommunication ,electricity and
health care. National Health Services are the central owned enterprise aimed to
provide a free medical services to the citizens of UK.
 Local councils :- These are the organisations whose services are directed towards
the local people of a district. These can be local transportation between local
area,health care units and educational institutes.
 Private sectors :- These are all those profit-making organisation which are owned,
controlled and governed by an individual or enterprises (Vo, and et. al., 2020). They
are sole-proprietorship, partnership firms, small and medium business, large and
multi national cooperation and trade unions.
Purpose of private organisations are:
 Private organisations are profit-driven and aims at increase the profit day by day. Another
objective of these organisation is to opt for a adequate organisational structure for future
growth and success.
Legal structure
 Sole-proprietorship :- Under this type of private companies there is only a one
owner where profits and losses are shared by a individual. This approach is
adopted by those who want be their own boss (Lu, Wang, and Xu, 2019). Few
examples of these business are, freelancers, artists, babysitters, cleaning service
providers and tutors.
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